Use the following to answer question(s): Supply and Marginal Factor Cost

-(Exhibit: Supply and Marginal Factor Cost) If the MFC curve and the supply curve derived from this exhibit are plotted on a graph, the _______ curve would lie _______ the ________ curve because _______ must be paid to hire an additional factor.

Question

Use the following to answer question(s): Supply and Marginal Factor Cost
 
-(Exhibit: Supply and Marginal Factor Cost) If the MFC curve and the supply curve derived from this exhibit are plotted on a graph, the _______ curve would lie _______ the ________ curve because _______ must be paid to hire an additional factor.

Quizplus · Accepted Answer

The MFC curve represents the additional cost of hiring an additional unit of a factor of production. Therefore, the MFC curve would lie above the supply curve because more must be paid to hire an additional factor.

Use the Following to Answer Question(s): Supply and Marginal Factor